This report is read as follows:

The company began to transform the Yunnan World Expo scenic spot, speed up the transformation and upgrading of the scenic spot, and continue to create a comprehensive tourism service operator in Yunnan.

Events:

Yunnan Tourism entrusts related companies to carry out preliminary consulting services for the upgrading and renovation project of the Expo Park.

Comments:

In 2019, the target price is 8.96 yuan, maintaining the overweight rating. Yunnan tourism began to transform the Kunming World Expo New area, speed up the transformation and upgrading of traditional scenic spots, and continue to build a global tourism integrated service operator in Yunnan Province. Maintain a profit forecast of 2019-2021EPS of 0.10, 0.12, and 0.15 yuan. If Wenlun Technology is injected, the 2019-2021 return net profit is 300 million / 400.00 million Yuan, maintaining the target price of 8.96 yuan, corresponding to the 2019 valuation of 89.6 xPE, and corresponding to the exam preparation performance valuation of 30.5 xPE. The valuation premium results from the high certainty of resource integration and Wenxu Technology injection, and the maintenance of overweight rating.

Upgrade and transform the project site of "Kunming Story" in the Expo scenic spot. The upgrading and renovation projects involved in this consultation are located in the Art Square Scenic area of the Expo Park and the Expo Recreation and Recreation Center, that is, the original "Kunming Story" project. The consultation includes the pre-conceptual planning, market research and positioning research, business planning and feasibility study of the South Asian town project of Kunming Expo Park. The consulting service fee is covered by the total price, and the price tax amounts to 6.2 million yuan. The consulting service fee shall be paid in advance by the company. After the final investment plan of the project is determined, the consulting service fee shall be fully borne by the project implementer. This transaction follows the relevant laws and regulations, the pricing is fair, and there is no harm to the interests and transfer of interests of listed companies.

Break the shackles of the fence and create an open business model for the Expo area. As the only well-preserved Expo site in the world, Kunming World Expo Park is a collection of gardens, courtyard buildings and scientific and technological achievements with local characteristics and 95 national styles. With the fading of the concept of Expo, the enthusiasm of tourists to visit the park has declined, and the income and net profit of scenic spots have shown a downward trend in recent years. In the face of declining profitability, the company changed its business thinking, hoping to get rid of the ticket economy, gradually introduce new product formats and commerce, and form a combination of ecological environment, cultural tourism and comprehensive business.

Continue to build a global tourism integrated service operator. In 2019, the company clearly defined the strategic goal of building a global tourism integrated service operator in Yunnan Province. after the injection of indoor amusement equipment, the layout of the company's tourism industry chain is comprehensive. Relying on the rich resources of scenic spots in Yunnan Province, the company will gradually trust and integrate the resources of scenic spots, while the business of culture, tourism, science and technology and gardening will provide strong content support for upgrading traditional tourist attractions.

Risk factors: the risk of accounts receivable, project settlement schedule is not up to expectations, macroeconomic factors affect travel willingness, natural disasters and other force majeure factors.